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Mortgage: Will you qualify for a USDA loan?

A mortgage is incredibly common among homeowners, but there are different loan types. One is the USDA loan which requires no down payment.

home mortgage paperwork on a clipboard next to a house

There are many programs to choose from when first buying your home, but USDA loans aren’t commonly known about.

This mortgage program is run by the U.S. Department of Agriculture under the Rural Development Guaranteed Housing Loan program, according to Marca.

This program specifically targets low to moderate income families purchasing rural homes.


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It requires zero down payment.

You may buy a new house or refinance one you currently have at a better rate.

The goal of the USDA is to help those with little access to homeownership acquire a home.


Stimulus: Mortgage assistance worth up to $80,000 available

Who can qualify for a mortgage through the USDA?

There are income limits depending on the size of your household and where you want to buy a house.

You may check your county’s income limits here.

The loans will only work for owner-occupied residences.

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Eligibility requirements for a USDA mortgage

  • You must be a U.S. citizen
  • The monthly payment must be less than 29% of your monthly income
  • The rest of your payments can’t exceed 41% of your income
  • Higher debt ratios are considered if your score is over 680
  • You must have a dependable income you’ve had for at least 2 years
  • Your credit history must be okay, with no collections within the last year unless that can be proven to be out of your control
  • You may use non-traditional credit references like utilities if necessary
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